Huntington Bancshares Incorporated Reports 2021 First-Quarter Earnings
2021 First-Quarter Highlights (compared with 2020 First Quarter):
- Net income was
$532 million, up $484 millionfrom the year ago quarter.
- Earnings per common share (EPS) for the quarter were
$0.48, an increase of $0.45.
- Return on average assets for the quarter was 1.76%, return on average common equity was 18.7%, and return on average tangible common equity was 23.7%.
- Tangible book value per common share increased
$0.36, or 4%, to $8.64.
- Fully-taxable equivalent total revenue increased
$216 million, or 19%.
- Fully-taxable equivalent net interest income increased
$182 million, or 23%, including the benefit of the $144 millionmark-to-market of interest rate caps and $45 millionof accelerated accretion from PPP loan forgiveness.
- Net interest margin increased 34 basis points to 3.48%, including the 51 basis point benefit of the mark-to-market of interest rate caps and the 16 basis point benefit from accelerated accretion from PPP loan forgiveness.
- Noninterest income increased
$34 million, or 9%, driven by a $42 million, or 72%, increase in mortgage banking income
- Noninterest expense increased
$141 million, or 22%, including approximately $21 millionof Significant Items expense related to the TCF acquisition.
- Efficiency ratio of 57.0%, up from 55.4%.
- Average loans and leases increased
$4.6 billion, or 6%.
- Average commercial loans increased
$3.9 billion, or 11%, and average consumer loans increased $0.6 billion, or 2%.
- Average core deposits increased
$16.3 billion, or 20%.
- Average demand deposits increased
$14.7 billion, or 36%.
- Net charge-offs equated to 0.32% of average loans and leases, down from 0.62%.
- Nonperforming asset ratio of 0.68%, down from 0.75%.
- Provision for credit losses decreased
$501 millionyear-over-year to $(60) million.
- Allowance for credit losses (ACL) increased
$199 millionto $1.7 billion, or 2.17% of total loans and leases.
- Common Equity Tier 1 (CET1) risk-based capital ratio of 10.33%, up from 9.47% and modestly above our 9% to 10% operating guideline.
- Tangible common equity (TCE) ratio of 7.11%, down from 7.52%.
- In March, Huntington shareholders approved the planned acquisition of TCF Financial.
- In March, Huntington announced the planned consolidation of 44 Meijer in-store branches, which are expected to be completed in the 2021 second quarter.
"Our first-quarter results reflected a very strong beginning to what will be an important year for Huntington. The economic recovery continues to gain its footing, and we are seeing encouraging signs throughout our footprint and our individual businesses. Our lending pipelines are up across the board, and customer sentiment is improving—supporting our confidence in more robust loan demand later in the year. Additionally, we continue to see strong core deposit inflows and expect this elevated level of liquidity will remain for some time," said
"We continue to make substantial progress with our pending acquisition of TCF. We recently received approval of the transaction from the shareholders of both companies. Our integration-planning teams are on track for a conversion later this year. We anticipate that we will receive the regulatory approvals and complete the acquisition as planned late in the second quarter."
"Our overall confidence in our performance and long-term strategy continues to drive our progress in extending digital capabilities across all parts of Huntington – from the development of digital-only tools in the
The first quarter 2021 earnings materials, including the detailed earnings press release, quarterly financial supplement, and conference call slide presentation, are available on the Investor Relations section of Huntington's website, http://www.huntington.com. In addition, the financial results will be furnished on a Form 8-K that will be available on the
Conference Call / Webcast Information
Huntington's senior management will host an earnings conference call on
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